Corporate Art Collections

A Handbook to Corporate Buying

Charlotte Appleyard, James Salzmann

• Publisher: Lund Humphries
• Year: 2020
• Print ISBN: 9781848220713
• eBook ISBN: 9781848221093
• Topic: Art
• Subtopic: Art & Business

This new volume in the series of Handbooks in International Art Business published in association with Sotheby's Institute of Art offers a timely guide to corporate collecting, examining the history, nature and importance of corporate collecting and the different reasons for starting and maintaining corporate collections, including investment, cultural cache, and asset diversification.
Why do institutions take the plunge into an asset class that is usually very far from their core businesses? The authors categorise modern corporate art collections into four broad categories. First, there is the traditional corporate collection, where works are purchased directly from galleries or artists to enhance the office environments. Many of the collections that fall into this category - largely banks or financial-service organisations - have some of the best-quality works of any corporately held collection. The second category includes those collections that seek to say something about the company's corporate identity: these collections have become very involved with how the company would like to project itself. The third category is philanthropic collections: those that structure their collection strategy around a charitable remit. And finally the all-rounders: those companies whose work with the arts permeates their identity, office environment, social outreach and sponsorship.
Based on interviews with the curators, consultants and investors who run such collections, and more extended case studies of important collections worldwide, the book concludes with an examination of when corporate collecting becomes a liability and the market-impact of deaccessioning, looking ahead to the future of corporate collecting.

PART ONE

THE COLLECTIONS

BEGINNING OUR TOUR

Starting work on a survey of current corporate art collections in 2009 was not easy. Two years earlier, the BBC claimed, the credit crunch had begun, although the full extent of the crisis was hardly clear. (That defining event of the decade is a much longer story, of course, and one told well elsewhere, but for the art market’s purposes perception is almost as important as the more complex reality.) It had begun to hit home for many only in September 2008, when Lehman Brothers collapsed on the same day that Damien Hirst’s one-man sale at Sotheby’s made millions. The news that evening juxtaposed images of unemployed bankers leaving Lehman’s offices, their belongings packed in cardboard boxes, with Hirst’s preserved beasts and dot paintings being hammered down on Bond Street for seemingly unprecedented sums of money (plate 3). In light of the weight of public opinion against outlandish spending by financial institutions, it was a difficult time to start speaking with banks about their corporate art collections. As Colin Tweedy, chief executive of Arts & Business, a British organisation that brokers corporate relationships and sponsorships of the arts, told us in interview in 2011, the ramifications are enduring ones: ‘Corporate collections are seen as an indulgence when so many people are having their salaries slashed. The corporate world for the next five to ten years will be very nervous about developing their collections too much. There will be a lack of confidence in the market or in the perception of it. Companies will want to be seen to be austere. Corporates usually buy better – but the individuals will be keeping the art world together.’¹

So as former Lehman employees wandered off against the media backdrop of Hirsts flying off the walls, art world insiders wondered what was going to happen to the art collections they had amassed. It had been a tumultuous year for the financial markets, with an uncertain road ahead for art – a field in which investor confidence is often closely tied to the performance of the bourses. But even as galleries and auction houses retrenched and dug in for a long, cold season ahead, signs of life continued. In 2010, Sotheby’s alone fostered the following sales:

• In February 2010, on behalf of Commerzbank, Giacometti’s L’homme qui marche I for £65 million – the highest amount ever achieved for a corporation through the auction sale of art from its holdings, a sum in this case represented by the sale of just one work of art.
• In March 2010, the British American Tobacco Artventure Collection, the largest collection of contemporary art ever to come to auction in the Netherlands, which doubled its estimate with a sales total over €30 million.
• In June 2010, photographs from the Polaroid Collection in New York for $12.4 million, and in London an Yves Klein work owned by the German financial giant HypoVereinsbank for £6.2 million.
• In September 2010 the Neuberger Berman/Lehman Collection auction in New York totalled $12.3 million and set 17 new artist records.

Of course, the final story of corporate collecting in the modern age is yet to be written. Just as the 1980s boom in corporate collecting might be seen as a direct reflection of a buoyant stock market, the early years of the twenty-first century may yet end on a down note for this industry. It does not seem likely, however, judging by the views we have seen of corporate collecting when researching this book. It should be noted that reporting on corporate collecting culture in such a climate, when we do not know how long the economic downtown will last or what will happen next, has impacted not only on the access we have been granted during the research of this book but also on the methodologies being employed in the formation and care of the very collections we are investigating. As with any study of corporate collecting, which is by its nature an of-the-moment topic, the collections we will focus on are the product of a discrete window in history.

As we have already seen, and as other authors before us have so adeptly illustrated, the twentieth century was, broadly speaking, a renaissance for corporate art. The great collections started by Rockefeller, Fleming and Baring still exist today and have spawned many copies. For a variety of reasons we have touched upon in the introduction and which we will explore further through an examination of living art collections, corporate art has become a norm. The following interviews and case studies took place over the course of two years, largely via face-to-face conversations, tours of collections and meetings, and, where travel schedules were restrictive, by phone or email. The intention was twofold: to attempt as close to a survey as is possible in the current financial climate, and to examine those collections that an art historian might deem ‘important’. This would be judged largely upon the quality of the works within the collections, but also how hard the collection works, how the pieces within it relate to one another and, in some cases, how successfully they marry with or reflect the company that houses them.

Some of the collections discussed in the next few chapters have been covered in previous publications. Many have not been documented, though, or have not granted interviews until now. Whilst public debate about the regulation of financial institutions might have tempered some largesse with regards to discussion of price or value, collectors were generally happy to speak about the works and why they and their companies value them. This chapter will examine the themes, considerations and threads that unite or distinguish various types of corporate collection. What follows is an in-depth account of each collection with which we have worked or corresponded.

To decide to begin a corporate collection of contemporary art carries with it the same risks as a private collection. With a reasonable budget, some experience and/or the right consultant, it is relatively simple to quickly establish a collection of historical art or objects. In contemporary art one is taking something more of a risk. Many of the artists the buyer is presented with are untested. Even if one seeks the advice of a consultant, curator or dealer, a lot of the works acquired by these contemporary corporate collectors have little or no secondary market exposure. One could probably safely advise that purchasing a fully attributed Titian or Goya would be a reasonably steady investment, based on centuries of market endurance that eventually transcend the whims of fashion. It is not always so easy with younger artists. This is, however, part of the thrill. Supporting – or at least appearing to support – younger, emerging or untested talent through corporate buying is a common thread in many of the collections we will be examining.

We now turn to an analysis of the themes that run through or distinguish collections working today – most of which were started after 1993. Fabienne Nicholas, head of consultancy for the Contemporary Art Society for five years and now responsible for a portfolio of corporate collections, public art commissions and curatorial projects, suggests that over the past few years, corporate art collecting has become much more common:

I think the idea of having an art collection has filtered more into the mainstream – it’s not only the big companies that are engaged in some way. There’s also more of a focus on the additional benefits that having a collection can bring – trying to add value and rationale to the expenditure. Things like bringing in artists to talk about the work, using the art as part of marketing materials/brand identity, and developing material that helps employees to engage with the collection.²

The next few chapters will illustrate that the collections we spotlight fall into four broad categories. First, there is the traditional corporate collection, where works are being purchased directly from galleries or artists to enhance the office environment. These might be considered to be ‘curatorially led’, and they are seeking to enrich the office cultural ecology. Very few could be described simply as decoration; many of the collections that fall into this category – largely those of banks or financial service organisations – have some of the best-quality works of any corporately held collection. The second category includes those collections that seek to say something about the company’s corporate identity. Either by accident or design these collections have become very involved with how the company is perceived or would like to project itself. The third category we will broadly refer to as the ‘philanthropists’ or ‘corporate patrons’. Whilst almost all of the collections we examined extend their interests through sponsorship of the arts, a small but growing number have structured their entire collection strategy around a charitable remit through the creation of prizes or direct engagement with the domestic and international artistic community. Finally we will turn to the ‘all-rounders’, companies whose work with the arts permeates their identity, office environment, social outreach and sponsorship.

Before we address these categories in more detail it is important to consider the set of unifying challenges and considerations each collection must face. These can be divided, broadly, into a range of categories that tend to define collection identities, and include: personal clout, as exemplified by the leader who starts the collection and acquires the works; collection management; decoration or cultural experience; brand identity, and how the collection might relate to it; corporate social responsibility, including how to avoid the perception of collective dilettantism; censorship, and the challenges of displaying art in a non-museum environment; and investment, including the question of whether or not establishing a collection is an appropriate way to diversify the company’s portfolio.

Personal clout

The decision to start an art collection within a company almost always comes from the top. The idea might come from an owner with an existing passion, as with Peter Simon’s collection at retail chain Monsoon, or a senior partner who has worked his or her way up at the firm and, upon reaching an appropriate level of authority, has asserted a desire to see the firm start an art collection, as was the case with Stuart Evans at law firm Simmons & Simmons. Fabienne Nicholas endorses this view: ‘Usually a driven individual at the top is the reason why a collection ever gets off the ground – someone who is interested in art primarily. The other benefits to business – marketing, brand values, client hospitality, employee engagement – seem to develop later as the collection takes shape, so I would not call that a primary motivation.’³

Collection management

Once the decision has been made to start an art collection, one must think carefully about how to grow and maintain it. Of the company directors and senior partners we spoke to who had the clout to start the collection themselves, many were already fairly well versed in the contemporary art world and had clear ideas of the kind of works they wanted on their company’s walls. But nearly all admitted that they had neither the time nor the connections to be able to source and assess quality pieces for their collections. In response, most solicited help from professionals or experienced amateurs.

The majority of the collections we spoke with had outside consultants who helped them to gauge what they wanted from their art holdings, and started managing the purchasing for them. To gain insight into their spheres of influence, we talked to Nicholas and Bridget Brown, a private consultant who works with both private and corporate collectors. Both women begin their discussions with new corporate clients by establishing if there is a theme or identity that the company wishes to explore or express through what goes on the walls. Nicholas explains:

With a corporate collector you are not only working within the framework of either an individual or art group’s taste, but within the larger brand and corporate structure. Collections always represent their collector in some way, so with companies the messages around their corporate identity need to be understood and the collection developed in ways that acknowledges that creatively. I find that it can be less hands on, too – very often with corporate collections, artworks are viewed remotely by the decision maker or makers, in presentation form, so there is a bit of a distance from the work and from the artists’ practice. Decisions tend to be made very quickly, and often it is quite clear what the parameters for the collection are, whether a set budget, a time frame, limited or expanding spaces, and so on.⁴

Viola Raikhel-Bolot is co-founder and managing director of 1858 Ltd Art Advisory. Hers is a specialist firm established to provide independent and impartial advice to high- and ultra-high-net worth individuals, financial institutions, corporations and museums on the various components of the art collection process. Raikhel-Bolot’s thoughts on managing a corporate relationship are not dissimilar to those of Nicholas: ‘The objectives of a corporate collector are often to enhance the global image and perception of their corporation. We ensure that the artworks will appreciate in value, enhance corporate identity and stimulate a dialogue among employees and clients. When working with a corporate collection we typically acquire groups of work to be exhibited together. The private collector requires more hand-holding.’⁵

There is a ready trade in consultants willing to advise and work with corporate clients, and their responsibilities range from arranging views, presentations and introductions to artists and gallerists to practical issues of installation, management and insurance. Even if two companies use the same consultant, that consultant might tailor the working relationship to the company and collection, in some cases remaining hands off and in others being involved with every fine detail. Almost all the collections in this book have hired an art advisor at some stage in the evolution of their collection. Only when the employee or owner responsible for the launch of a collection is already well-versed in contemporary art, as at Simmons & Simmons, or already remarkably well-connected, as with Peter Simon at Monsoon (who had Tate Director Sir Nicholas Serota and world-renowned dealer Thomas Dane at his side), can a company responsibly get by without another advisor or figure in the background.

In some cases, when collections get big enough or when the company has especially lofty ambitions, this model can be further elevated through the hiring of an in-house curator. In most cases, this is someone who is actively involved with acquisitions – for example Andrew Bonacina at Monsoon, Lisa Erf at JPMorgan Chase or Elliot McDonald who, until recently, was at Hiscox. Having an in-house curator can actually work out to be more economical for the company, as they can use internal resources and rely upon assistance more regularly than with the freelance consultant. It does, however, mean that there must either be enough works in the collection to make their time worthwhile, or that their ambitions for acquisition exceed what a freelancer might be able to achieve. In the case of the JPMorgan Chase collection – with tens of thousands of pieces, many of them worth considerable sums of money – a full-time curator is obviously a necessity. However, this was also another area that had been directly affected by the financial climate at the time of writing. In bullish economic periods a staff curator might not seem like an outrageous expense. When the most recent financial downturn began, though, there were certain collections where curators were made redundant and responsibility for the maintenance of the collection fell into something of grey area thereafter.

Decoration or cultural experience?

In closely analysing the content and methodology of the corporate art collection one can often lose sight of the most basic common denominator. These collections exist in office environments, and all of them aim to enhance the working environment – even if the manner by which they go about it differs. Every organisation can work a little better or worse on the basis of the planning and design of their workspace. Professional performance is probably more closely associated with office furnishings and facilities than how moving or cutting-edge the art on the wall is, but it is undeniable that inspiration and creative innovation are at the heart of what most viewers look for in artworks – and what most employers want to see in their workforce. Just as the office has evolved over time in response to changes in technology, economic circumstances and employee demographics, so too has the corporate art collection. ‘Art’ by its most basic definition is, and has long been, bought or commissioned to enrich the spaces in which we live and work. The characterless nature of so many modern corporate spaces makes them natural targets and repositories; indeed, some of the corporate collectors we spoke to mentioned some ‘consultants’ who sought to supply art by the acre: by supplying enough bland abstract canvases to fill the available wall space, they felt that they had fulfilled the tender. This may well be the case; it is easy to make a room cheerful through the addition of cheerful pictures, and the strategy is legitimate, cost-effective and widespread, even while it is of only the most limited interest to the serious collector. This book does not seek to cover such decorative works. Whilst most works within a corporate collection will be chosen with a view towards enlivening a work environment, all the collections we covered had far greater ambitions for the bodies of work they were amassing.

A sizeable number of the collections we spoke to began life when a company moved offices and they were either able to design the entire interior from scratch, or where the architecture had altered the space possibilities to such an extent that company directors seized the opportunity to break out of cubicle-based workstations and dull conference rooms. The Pritzker Priz...

Table of contents

• Cover
• Title Page
• Copyright
• Contents
• Acknowledgements
• Foreword
• Preface
• Introduction: The Development of the Modern Corporate Collection
• Part One. The Collections
• Part Two. Change, Crisis, Finance and What Lies Beyond
• Starting a Corporate Collection
• Appendix: Interviews
• Notes
• Bibliography